The Government has approved the “Revival, Reform and Restructuring Package for Handloom Sector” with the total financial implication of Rs. 3884 crore, out of which Government of India’s share is Rs. 3137 crore and the share of the State Governments is Rs. 747 crore.  The component-wise details of the Financial Package are as follows:

            The imitative is likely to benefit 15000 Cooperative Societies and about 3 lakh weavers across the country including Madhya Pradesh.  There is a limit of Rs. 50,000 per beneficiary for the amount of over dues to be waived off in the case of individual beneficiaries.  The exact number of beneficiaries and actual amount of such waiver will be known only after the special audit and scrutiny of all such claims is completed in accordance with the prescribed procedure.  It needs to be noted, however, that the amount is tentative, and that the scheme is essentially “demand-driven, i.e. all “eligible” weaver cooperative societies and individual weavers who fulfill the criteria will have their overdue loans and interest as on 31.3. 2010 waived off.

            The Government has also announced a Comprehensive Package for the Handloom Sector.  This package addresses the twin needs of credit and yarn for this sector.  Credit related interventions include: (i) Interest Subvention @ 3% on fresh loan sanctioned, (ii) Margin Money @ Rs. 4200 per weaver, and (iii) Credit Guarantee.  Likewise, yarn related benefits are (i) 10% Price Subsidy on Hank Yarn, and (ii) enhanced freight reimbursement under Mill Gate Price Scheme.

This information was given by Smt. Panabakka Lakshmi, Minister of State for Textiles , in a written reply in the Rajya  Sabha today.